State Of Punjab & Ors vs Shital Fibres Ltd. & Anr

The Supreme Court held that the issue of whether blankets fall under the category of 'textile fabrics' exempted from tax under Section 51 of the Punjab Value Added Tax Act, 2005 requires adjudication by the Assessing Officer. The Court found that the Punjab and Haryana High Court erred in quashing the show cause notice at the threshold, emphasizing that the matter should be determined by the competent authority. The Court set aside the High Court's judgment and allowed the Department's civil appeal, remitting the case for further proceedings without expressing any opinion on the merits.